NRJ GROUP (NRG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NRG - FR0000121691 - Common Stock
7.58 EUR
-0.04 (-0.52%)
Taking everything into account, NRG scores 6 out of 10 in our fundamental rating. NRG was compared to 68 industry peers in the Media industry. NRG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NRG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- NRG had positive earnings in the past year.
- NRG had a positive operating cash flow in the past year.
- Each year in the past 5 years NRG has been profitable.
- Each year in the past 5 years NRG had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.53%, NRG is doing good in the industry, outperforming 79.10% of the companies in the same industry.
- With a Return On Equity value of 5.83%, NRG perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
- With a Return On Invested Capital value of 4.06%, NRG perfoms like the industry average, outperforming 47.76% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for NRG is below the industry average of 7.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 5.83% | ||
| ROIC | 4.06% |
ROA(3y)4.46%
ROA(5y)4.24%
ROE(3y)5.78%
ROE(5y)5.55%
ROIC(3y)4.38%
ROIC(5y)3.42%
1.3 Margins
- NRG has a better Profit Margin (10.14%) than 86.57% of its industry peers.
- In the last couple of years the Profit Margin of NRG has grown nicely.
- The Operating Margin of NRG (10.50%) is better than 68.66% of its industry peers.
- NRG's Operating Margin has improved in the last couple of years.
- The Gross Margin of NRG (86.49%) is better than 83.58% of its industry peers.
- NRG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 10.14% | ||
| GM | 86.49% |
OM growth 3Y3.36%
OM growth 5Y8.52%
PM growth 3Y11.64%
PM growth 5Y13.65%
GM growth 3Y2.19%
GM growth 5Y8.65%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NRG is destroying value.
- Compared to 1 year ago, NRG has about the same amount of shares outstanding.
- The number of shares outstanding for NRG remains at a similar level compared to 5 years ago.
- NRG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.83 indicates that NRG is not in any danger for bankruptcy at the moment.
- NRG's Altman-Z score of 3.83 is amongst the best of the industry. NRG outperforms 95.52% of its industry peers.
- The Debt to FCF ratio of NRG is 0.88, which is an excellent value as it means it would take NRG, only 0.88 years of fcf income to pay off all of its debts.
- NRG's Debt to FCF ratio of 0.88 is amongst the best of the industry. NRG outperforms 91.04% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that NRG is not too dependend on debt financing.
- NRG has a better Debt to Equity ratio (0.04) than 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.52
WACC7.81%
2.3 Liquidity
- NRG has a Current Ratio of 3.44. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.44, NRG belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
- NRG has a Quick Ratio of 3.38. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of NRG (3.38) is better than 98.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
- NRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.61%.
- The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 1.14% in the past year.
- NRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-6.61%
EPS 3Y14.98%
EPS 5Y14.07%
EPS Q2Q%-25.86%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y3.01%
Revenue growth 5Y0.36%
Sales Q2Q%-1.05%
3.2 Future
- Based on estimates for the next years, NRG will show a decrease in Earnings Per Share. The EPS will decrease by -4.07% on average per year.
- Based on estimates for the next years, NRG will show a decrease in Revenue. The Revenue will decrease by -3.92% on average per year.
EPS Next Y-18.92%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
EPS Next 5YN/A
Revenue Next Year-18.05%
Revenue Next 2Y-9.13%
Revenue Next 3Y-5.71%
Revenue Next 5Y-3.92%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.04 indicates a correct valuation of NRG.
- The rest of the industry has a similar Price/Earnings ratio as NRG.
- NRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 16.68, the valuation of NRG can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
- NRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
- NRG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NRG is cheaper than 88.06% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as NRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
- NRG has a very decent profitability rating, which may justify a higher PE ratio.
- NRG's earnings are expected to decrease with -4.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.87%, NRG has a reasonable but not impressive dividend return.
- NRG's Dividend Yield is a higher than the industry average which is at 3.08.
- NRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
- The dividend of NRG is nicely growing with an annual growth rate of 14.87%!
Dividend Growth(5Y)14.87%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- NRG pays out 62.70% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of NRG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP62.7%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
NRJ GROUP / NRG.PA FAQ
What is the ChartMill fundamental rating of NRJ GROUP (NRG.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NRG.PA.
Can you provide the valuation status for NRJ GROUP?
ChartMill assigns a valuation rating of 4 / 10 to NRJ GROUP (NRG.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for NRJ GROUP?
NRJ GROUP (NRG.PA) has a profitability rating of 7 / 10.
What is the financial health of NRJ GROUP (NRG.PA) stock?
The financial health rating of NRJ GROUP (NRG.PA) is 8 / 10.
How sustainable is the dividend of NRJ GROUP (NRG.PA) stock?
The dividend rating of NRJ GROUP (NRG.PA) is 5 / 10 and the dividend payout ratio is 62.7%.